Capital Type | Specific criteria | Preferred Indicator | Evidence and availability of indicator (or close proxy) | Methods required for assessment | Social/spatial/ temporal scale of assessment | Relevance of measure |
|---|
(A) Social | Trust between landlord and tenant sectors | Change in level of trust of both tenants and landlords between T1 and T2 | NA | Survey | Stratified sample of tenants from Annual Rent Survey. Landlord sample from SRPBA? | Critical driver of willingness to innovate, resolve disputes (MORE, FAIRER) |
Linkages between tenanted farms and other players in rural economy | Business ventures with non farming businesses in area e.g. in diversification. Sharing of facilities. Involvement of tenants in community organisations. | NA | Survey | Stratified sample of tenants from Annual Rent Survey. Landlord sample from SRPBA? | Assesses importance of tenants in community participation (MORE) |
Demography of the Scottish industry | Age profile of tenants versus age profile of whole industry. Background of those entering the industry as tenants. | SEERAD annual census and Rent Survey Separate Sample Survey to identify background/route of new entrants to tenanted sector. | Draw down existing data. Add younger age strata than simply "under 55" Rent survey adds question on whether or not a young successor involved in the business? | National | Is the tenanted sector providing a route for youth/ young entrants? (MORE, DIVERSE) |
New "landlords" | No. of non traditional estate landlords between T1 and T2 | NA | Survey | Sample from selected regions on ongoing basis | Are retiring/ restructuring farmers and new landowners willing to let land for the first time? (DIVERSE) |
(B) Economic (financial) | Landowners perceived economic risk in letting land | Change in rating on a 1 to 10 scale between T1 and T2 | NA | Survey | Periodic stratified sample | Critical factor in willingness to adopt long term tenancy forms (MORE) |
Perceived cost of operating different tenancy/ land use mechanisms | Change in rating on a 1 to 10 scale between T1 and T2 | NA | Survey | Periodic stratified sample | Important factor in willingness to adopt new tenancy forms (MORE) |
Average rents | Average rents trend | SEERAD annual rent survey | Draw down existing data. Extract new rents? | National sample | Measure of supply and demand (MORE) |
Farming profitability per person in the tenanted sector versus whole industry profit per person | Net Farm Income per FTE | SEERAD Farm Accounts Scheme tenants sub sample? Extra info from FAS on FTEs involved on tenanted farms? Extrapolate as per national accounts in Economic Report on Scottish Agriculture? | Draw down existing data. | National FAS sample | Core measure of a vibrant tenanted sector (MORE) |
Landlord viability | Profitability of estate businesses with strong bias toward agricultural lets | NA | Difficult (impossible) to get real financial data. Can get indication of change in profitability from Land Agents | National view from Land Agents or sample estate survey | An indicator of whether or not estates will stick with letting land to agriculture (MORE) |
Tax, property and subsidy regime impacts on viability of letting land | Change in rating of each factor on a 1 to 10 scale between T1 and T2 | NA | Survey | Land Agent and/or estate sample survey | An indicator of whether or not estates will stick with letting land to agriculture (MORE) |
Land court expenditure | Trend in £ per annum on tenancy disputes | Available from Land Court | Draw down existing data | National | Indicates how well legislation is allowing disputes to be solved without recourse to Land Court? (FAIRER) |
Investment on tenanted farms | Trend in £ per annum | Annual Rent Survey . | Draw down existing data or additional sample survey | Sample of tenants | Indicates confidence in way-go compensation rules and willingness by both parties to take long term view of tenancies (FAIRER) |
Non farming income levels in tenanted farm households | Trend in £ per annum off-farm income for tenants versus non-tenants | Indication from tenants within FAS | Survey | Sample as per Rent Survey versus similar scale of sample of farms predominantly owner occupied. | Measure of ability of tenants to diversify and hence success of legislative changes (DIVERSE) |
Subsidy reliance | Subsidies as proportion of household or farm income. Tenants versus non tenants. Trend over time. | FAS | Periodic survey | Sample of tenants and non tenants | Measure of how well tenanted sector is contributing to a forward looking industry with a reducing reliance on subsidy (DIVERSE) |
(C) Human | Education, skills and experience of tenants (esp. new tenants) | Rating of each on 1 to 10 scale for new tenants each year. Plot trend over time. | NA Need to define categories of "education", "experience", etc. | Survey of new entrants | National | Indicator of calibre of people being attracted to the sector (MORE) |
Negotiation and dispute resolution skills | Refer to land court expenditure above. Plus rating by tenants of their skills in this area. | For land court see above. Rating not available. | Survey | National sample | Indicates maturity of sector and influence of legislation (FAIRER) |
Understanding of tenancy types/ options, specifically amongst those who could become landlords (retiring farmers, new landowners, in hand/ CFA estates). | YES/NO/LITTLE type rating, between T1 and T2 | NA | Survey | National sample | Important measure of understanding - first step to adoption. (MORE) |
Indicators of innovation; adoption of new technology, new enterprise start-ups, membership of discussion/ monitor farm/ specialist enterprise groups | Pick examples and ask if adopted. Trend over time and comparison with rest of industry. | NA | Survey | National samples | Measure of vibrancy of sector and type of people attracted to sector. Is the tenanted sector acting as a tool to invigorate the industry? (DIVERSE) |
Business skills (ability to assess markets, cost options, manage budgets, record performance) | Pick examples and ask if adopted. Trend over time and comparison with rest of industry. | NA | Survey | National samples | Measure of vibrancy of sector and type of people attracted to sector. Is the tenanted sector acting as a tool to invigorate the industry? (DIVERSE) |
(D) Environmental | Extent of mixed, rotational farming in the "hands-off" land management sector. | Proportion of "hands off" managed farms not classed as cereals or general cropping, compared to national proportion | NA and very difficult to gather | Survey | National sample. Perhaps better understood on case study basis. | Measure of flexibility given by legislative framework to allow landowners to have their land managed for mixed farming, rather than reverting to arable CFAs (MORE) |
Area under environmental management on tenanted farms | Proportion of total farmed area compared to rest of industry over time. | RSS and other environmental schemes ( SEERAD and SNH). Can largely tenanted units participating in RSS be extracted from the records? Can farming system be extracted? | Draw down existing data | National | Measures ability of tenants to adopt environmental schemes - indirect indication of relations with landlord and control over farming policy (MORE) |
Total investment in environmental improvement and waste management | £ per annum in tenanted and non tenanted sectors plotted over time | RSS NVZ grant schemes | Draw down existing data if it can be interrogated correctly | National | A good measure of confidence and awareness and innovation in the tenanted sector (MORE) |
No. of SEPA / NVZ / cross-compliance fails on tenanted farms | Number per 100 farms in tenanted and non tenanted sectors per annum | SEPA and SEERAD | Draw down existing data | National | Is the tenanted sector better or worse informed/ adequately invested in environmental protection in comparison to the rest of the industry? (MORE) |
Range of environmental investments (no. of RSS schemes, LMC options, range of habitats and biodiversity) | Closely related to total investment in environmental improvement and area under environmental management as described above? | SEERAD and SNH data | Access SEERAD and SNH files | National | (DIVERSE) |
( E) Physical | No. of new tenancies | Number of new formal tenancies set up each year | NA | Survey of top 10 land agents | National | Indicator of success of new tenancy forms (MORE) |
Total no. of tenants | Number | SEERAD June census | Draw down from existing data | National | Indicator of vibrancy of tenanted sector (MORE) |
Area of let land | Ha | SEERAD June census | Draw down from existing data | National | Indicator of vibrancy of tenanted sector (MORE) |
Tenant proportion of new entrants | Proportion of new entrants who are tenants | NA Need number of new entrants each year and then identify those who entered as tenants. Need to define a "new entrant". | National impossible? Periodic survey in selected case regions? | Selected regions to give spread of Scottish farming types | Indicator of success of tenanted sector as a means of bringing new people into the industry (MORE) |
The proportion of farmed land which is not actively farmed by the owner | % of Scottish farmed area | NA | Could be captured by and extrapolated from expanded Rent Survey | National sample. Perhaps regional case approach. | True measure of the size of the "hands-off" operation of land. Can show importance of tenanted sector within this total. (MORE, DIVERSE) |
Breakdown of the above | Area under CFAs, contract deals, no rent lets, formal tenancies, annual lets. Also ideally the numbers of each. | NA | Could be captured by and extrapolated from expanded Rent Survey | National sample. Perhaps regional case approach | Shows reality of how landowners who do not wish to actively farm are operating their land. Big gap in current knowledge. (MORE, DIVERSE) |
No. of land court disputes | Trend in £ per annum on tenancy disputes | NA: Needs survey | Survey of cases | National | (FAIRER) |
Speed of resolution of disputes | Trend in £ per annum on tenancy disputes | NA Needs survey | Survey of cases | National | (FAIRER) |
Indication of number of disputes/changes handled without recourse to land court | Number and description | NA Need to define dispute - is it just an issue? | Only possible by sample surveys showing trends over time | Selected samples of landlords/ tenants | An assessment of trust and effective legal structures which remove uncertainty and the need for disputes (FAIRER) |
(F) Cultural (symbolic ) | Sense of place | No. of tenants who want to continue farming and inheritors who want to continue the farming or land using tradition within a geographically defined area. Feeling of shared responsibility with landlord. | NA | Survey of attitudes. Track farm histories within a defined area. | Selected regions | Is the tenanted sector helping maintain the strong sense of place which helps the wider local population feel it is part of a community? |
Language/ Dialect | Open and published use of dialect in media, local schools, signage. Comparison between tenant farming and owner occupied areas | NA | Analysis of media, local publications, individual survey. | Selected regions | Has the legislation added confidence to traditional speakers and enhanced the unique culture of a locality? |
(G) Institutions & processes | Development of the TFF | Measurement of how well it has met its objectives | NA | Periodic rating by industry and stakeholders | Sample | TFF sits at the centre of the movement toward a better understanding between landlords and tenants and may drive and inform future legislation. The Tenancy Reform Industry Group has played this role In England, leading to further amendments to tenancy law in 2006. |
Joint planning or information sharing between estates and their tenants | No. of estates holding workshops and information sessions with tenants, producing info leaflets/ newsletters, etc. | NA | Periodic sample survey or case study regions | Sample | Is the process of land reform leading to more information sharing and sharing of ideas between landlords and tenants? |
New economic arrangements between landlords and tenants | No. of joint marketing ventures, cooperation on diversification, sharing of physical resources, sub-contracting estate work to tenants businesses | NA | Periodic sample survey or case study regions | Sample | Is the process of land reform leading to a closer/ broader economic relationship between the parties beyond the standard landlord-farming tenant relationship? |